John Marshall Bancorp(US:JMSB)2024-05-14 13:08Financial Position - As of March 31, 2024, the Company reported total consolidated assets of $2.25 billion, total loans of $1.82 billion, total deposits of $1.90 billion, and total shareholders' equity of $234.5 million[157]. - Total assets increased by $9.3 million or 0.4% to $2.25 billion at March 31, 2024, primarily due to increases in interest-bearing deposits[196]. - Total liabilities increased by $4.7 million or 0.2% to $2.02 billion at March 31, 2024, driven by net increases in borrowings[197]. - Shareholders' equity rose by $4.6 million or 2.0% to $234.6 million at March 31, 2024, attributed to increased net income and additional paid-in capital[198]. - Book value per share increased to $16.51 as of March 31, 2024, compared to $16.25 as of December 31, 2023[233]. Income and Earnings - For the three months ended March 31, 2024, net income was $4.2 million, a decrease of $2.1 million compared to $6.3 million for the same period in 2023, with diluted earnings per share of $0.30 compared to $0.44[165]. - Non-interest income increased to $818,000 for the three months ended March 31, 2024, compared to $566,000 for the same period in 2023[162]. - Interest income increased by $3.4 million or 14.7% to $27.0 million for the three months ended March 31, 2024, compared to $23.5 million for the same period in 2023[179]. - Income tax expense decreased by $525 thousand or 30.3% to $1.2 million for the three months ended March 31, 2024, with an effective tax rate of 22.3% compared to 21.6% for the same period in 2023[195]. Interest Income and Expenses - The net interest income for the three months ended March 31, 2024, was $11.7 million, down from $14.5 million in the same period of 2023[162]. - The tax-equivalent net interest income for the three months ended March 31, 2024, was $11,790 thousand, down from $14,535 thousand in the same period of 2023[170]. - Interest expense increased by $6.2 million to $15.2 million for the three months ended March 31, 2024, compared to $9.0 million for the same period in 2023, primarily due to higher rates on deposits and increased borrowings[185]. - The cost of interest-bearing liabilities rose to 3.81% for the first quarter of 2024, compared to 2.25% for the same quarter of the prior year, largely due to Federal Reserve rate increases[172]. Loan and Deposit Trends - The Company’s total deposits decreased from $2.09 billion as of March 31, 2023, to $1.90 billion as of March 31, 2024, reflecting a decline of approximately 9.5%[162]. - Total deposits decreased from $2,066,139 thousand as of March 31, 2023 to $1,914,173 thousand as of March 31, 2024, representing a decline of approximately 7.35%[229]. - Non-interest bearing demand deposits decreased by $6.7 million or 1.6% to $404.7 million as of March 31, 2024, representing 21.3% of total deposits[225]. - Interest-bearing deposits increased by $1.1 million or 0.1% to $1.50 billion as of March 31, 2024, representing 78.7% of total deposits[226]. - Core deposits totaled $1.59 billion or 83.6% of total deposits as of March 31, 2024, up from $1.58 billion or 82.7% at December 31, 2023[227]. Asset Quality and Risk - The allowance for loan credit losses decreased to $18.7 million as of March 31, 2024, from $21.6 million as of March 31, 2023[162]. - The company maintained strong asset quality with no nonperforming assets as of March 31, 2024[213]. - The company recorded net recoveries of $1 thousand during the three months ended March 31, 2024, consistent with the same period in 2023[219]. - The allowance for loan credit losses was $18.7 million or 1.02% of outstanding loans as of March 31, 2024, down from $19.5 million or 1.05% at December 31, 2023[219]. Capital and Liquidity - The Company maintains a strong capital position with a total risk-based capital ratio of 16.1% as of March 31, 2024, consistent with the previous year[162]. - Total liquidity increased to $788.7 million at March 31, 2024, up from $638.9 million at December 31, 2023, reflecting a strong liquidity position[240]. - The Company has authorized a stock repurchase program allowing for the repurchase of up to 700,000 shares, representing 5.0% of outstanding shares as of March 31, 2024[234]. - The Company has a total FHLB available borrowing capacity of $452.8 million as of March 31, 2024, supplemented by additional borrowing capacity with the Reserve Bank of approximately $111.9 million[238]. Operational Efficiency - The efficiency ratio for the three months ended March 31, 2024, was 63.1%, compared to 51.7% for the same period in 2023, indicating increased operational costs relative to income[162]. - Total non-interest expense increased by $154 thousand or 2.0% to $7.924 million for the first quarter of 2024 compared to the same period in 2023, mainly due to non-recurring professional fees and increased data processing expenses[194]. Investment Portfolio - The investment securities portfolio had a total carrying value of $253.4 million at March 31, 2024, down from $265.5 million at December 31, 2023[199]. - The company did not purchase or sell investment securities during the three months ended March 31, 2024, but had $11.6 million in maturities and principal repayments[200]. - The weighted average remaining life of the investment portfolio was approximately 4.3 years as of March 31, 2024[204].